The tranquility of Bitcoin traders has been perceptible with a recent price correction. The flagship asset wrestles hard to come out of the range-bound range, yet is stuck between $56k to $58k. While the asset trades within crucial zones, breakout or breakdown looks imminent in the next couple of days.
A crypto analyst DLavrov emphasized with one week chart from the trading view that Bitcoin price would plummet to the initial bottom support. Moreover, if it continues further declination, then it would undergo a heavy correction.
Analyst Sets Crucial Bottom Targets For Bitcoin Price Action!
The weekly chart shared by the analyst highlights the Bullish trend of the Bitcoin market, where flagship asset updated its new ATH around $69k. Within no time, the reversal candlestick pattern at the resistance flipped the asset to float around $64k for some days. Further, the most valued asset started a steady correction from there, gaining strength around $56k. Moreover, technical indicators RSI and MACD are pointing to a potential bear cycle ahead.
However, the analyst confirmed the asset’s correction movement post claiming its recent ATH of $69k. The analyst looks out for the support at 20 day MA between the asset’s previous swing high of $53k and $50k, where he expects a significant phase of accumulation. On the other hand, if the asset fails to bounce from the major support, then the price would undergo heavy correction to reclaim $40k support levels.
A report from on-chain crypto metric platform Santiment confirms the escalation in accumulation of the asset. While the flagship asset was correcting around $56k, a total of 40k BTC more were bought by whale addresses holding between 100 to 10k BTC. This further displays increase in interest towards the asset during corrections.
Collectively, though already a part of accumulation has taken place around $56k, continuation in the accumulation between $50k to $55k would uplift the price to new ATH. On the contrary, RSI and MACD factors indicate a bearish signal for Bitcoin price. If market sentiments and trends fail to support the price momentum, then it would undergo a heavy correction up to $40k.